The Hairstyl AI tool uses advanced AI technology to generate different hairstyles based on photos provided by users. It can work for both male and female haircuts and offers 40 different hairstyles to try. The AI model is trained on multiple headshot photos uploaded by users, and payment is securely processed through Stripe. The tool has already generated over 48,000 hairstyles, which users can preview on virtual models. The tool saves time and money by allowing users to experiment with different hairstyles without the need for expensive salon visits.